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HMRC internal manual

Employment Status Manual

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HM Revenue & Customs
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Employment Intermediary Reporting: Meaning of Specified Employment Intermediary - more than one individual provides services under or in consequence of a contract

Regulation 84E Income Tax (Pay As You Earn) Regulations 2003

Income Tax (Pay As You Earn) (Amendment No.2) Regulations 2015

One condition that must be met for there to be a specified employment intermediary is that:

“more than one individual provides services to a client under or in consequence of a contract between the employment intermediary and one or more clients”

A key condition here is there has to be more than one worker supplied. If a company supplies only one worker (for example a personal service company supplying only the owner/director), then company is not a specified employment intermediary.

If the personal service company supplies the owner/director to the client and then also sup-plies a substitute to work for the client, or supplies the client with other labour, then it would meet this test and need to tell HMRC about the workers it supplies via submitting a completed return to HMRC.